Manufacturing supply chains are set to be a key focus of the Albanese Government’s newly detailed $1.2 billion Critical Minerals Strategic Reserve, which aims to secure minerals essential to Australia’s economy, national security and domestic manufacturing capability.
In a news release, the government said the Reserve will initially prioritise antimony, gallium and rare earth elements, materials widely used in clean-energy, high-technology and defence manufacturing, including batteries, semiconductors, permanent magnets and advanced equipment.
Treasurer Jim Chalmers is expected to brief Australia’s allies and trading partners on the initiative during meetings in Washington DC this week, following earlier international engagement by Resources Minister Madeleine King.
The government further noted the Reserve will operate by securing rights to critical minerals produced in Australia and on-selling those rights to meet demand, a model intended to support local mining and processing while strengthening reliable supply for manufacturing industries at home and abroad.
Treasurer Jim Chalmers said the measure was designed to provide stability in an uncertain global environment. “In a rapidly changing world, the Strategic Reserve is all about safeguarding Australia’s future prosperity,” he said.
“Ensuring we have a reliable reserve of these critical resources will strengthen supply chains and help to stabilise critical minerals markets.”
Minister for Resources Madeleine King said the Reserve would support Australian projects linked to manufacturing outcomes.
“From defence applications to clean manufacturing, critical minerals are at the heart of our economic and national security,” she said, adding that the initial focus minerals would “give added certainty to Australian projects, help attract further investment and help the sector deal with potential future market disruptions.”
Under the plan, $1 billion will be allocated for transactions through the expanded $5 billion Critical Minerals Facility, which provides government-backed loans and equity support, with a further $185 million set aside for selective stockpiling and implementation costs.
Future transactions will be led by the Department of Industry, Science and Resources in partnership with Export Finance Australia, with enabling legislation to be introduced this year.
Trade and Tourism Minister Don Farrell said the initiative aligned with global demand linked to manufacturing and the energy transition.
“The Critical Minerals Strategic Reserve builds on the Albanese Labor Government’s work to secure investment in Australia’s critical minerals sector, create more high-paid jobs for Australians and deliver a resilient and sustainable critical minerals supply chain,” he said.
The government said the Reserve supports Australia’s updated Critical Minerals Strategy and complements existing agreements with international partners, including the United States, Japan, Europe, Canada and the UK, aimed at diversifying supply chains critical to advanced manufacturing worldwide.
